The Software Simplified Workflow allows users to create new statuses on demand. There is also the ability to remove unmapped statuses. Once an unmapped status is removed from a given board, I can see that it no longer appears in the Workflow for the project. Does this mean it is completely removed from the system? Is there anything left hanging around that would cause an ever-increasing number of statuses to accumulate, eventually causing performance and maintenance issues?
No, your instincts are pretty much spot-on! Removing a status from a simplified workflow won't remove it completely.
The overhead in leaving dead status around is not a significant problem for performance, they don't impose a lot of load, but cleaning them out certainly makes life nicer for your admins and users (typing "status = s..." into the filter entry and getting 97 results instead of a more helpful 2 is great)
Log in as an admin and go to Admin -> Issues -> Status and check the list. You have the option to delete them in there. Don't worry about mis-clicks, it won't let you delete status that are not in use.
While you are there, I would also take a quick look to see if you can simplify for your users and get them on the same language. Not the best example, but when To Do, Open, and New all refer to the same concept, why have you got three words?
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